Magnolia LNG taps Kinder Morgan unit for gas transport

Liquefied Natural Gas Ltd. subsidiary Magnolia LNG LCC (MLNG) executed a precedent agreement with Kinder Morgan Louisiana Pipeline LLC (KMLP) for transportation of natural gas sufficient to meet the full 8-million tonne/year Magnolia LNG Lake Charles, La., liquefaction project capacity.

MLNG will stand on 115 acres of leased land in Lake Charles’ harbor and terminal district. LNG Ltd.’s lease runs for as long as 70 years. The liquefaction plant has received approval from the US Department of Energy for export of up to 4 million tpy the countries having free trade agreements with the US.

Stonepeak Partners LP has committed $660 million for construction and commissioning of MLNG’s first two 2 million tpy LNG trains (OGJ Online, July 30, 2013). The agreement provides firm gas transportation for all four the MLNG’s planned trains from various receipt points on KMLP’s pipeline system.

KMLP will now file its application with the US Federal Energy Regulatory Commission to install pipeline compression and additional pipeline and interconnections to provide MLNG’s transportation service. KMLP’s FERC approval process will extend in parallel with FERC’s regulatory review of MLNG, with LNG Ltd.’s expectation that it will file its formal application with FERC in March-April after the agency’s completion of its prefiling process.